After repurchasing $1.5 billion of stock in the fourth quarter (30% more than the prior twelve months combined), Yahoo is still on the buyback bandwagon in the first quarter. According to a footnote (page 112) in Yahoo’s annual securities filing, the company bought back another $663 million worth of shares in January and February at an average price of $20.23. That brings the total to $2.1 billion since October (average price: $18.78).
And there’s likely more to come. Yahoo had $6 billion of cash and securities on its balance sheet at the end of 2012. Even after the first quarter’s repurchases, dry powder is still well above $5 billion. The company was authorized to repurchase an additional $3.4 billion worth of shares at the end of the year.
Once MM and her turnaround team were successful coupled with this billion dollars share buybacks, YHOO should be trading in the $30's price range with strong uptrend movements. This will be validated by analysts with revised upward PT.